Regional air routes: Govt seeks feedback on proposed changes in second round of bidding
The Government is seeking the comments of stakeholders on four changes it plans to bring during the second round of bidding for award of rights to fly under its regional air connectivity scheme (RCS) UDAN. These include whether the minimum distance to be flown to be eligible to fly under the scheme should be changed and whether the exclusivity of flying on a route should be reduced to one year from the current three years. The Government expects to award routes under the second round of RCS in August this year. Comments have also been sought on what should be the minimum number of RCS seats mandated on such flights. Currently, an operator has to offer a minimum of 9 seats at a fare of not more than ?2,500 for a one hour flight. It is proposed that while subsidy on seats will still be on a minimum of 9 seats, an airline will have the flexibility to operate say three flights a day with a four seater aircraft and claim subsidy which is currently not the case. The Government’s argument is that such a move will give greater flexibility to the players to plan the size of aircraft and their operations. Explaining the rationale behind seeking changes in the exclusivity clause, R.N. Choubey, Secretary Civil Aviation gave the example of a point informally suggested by the Maharashtra Chief Minister. “The Chief Minister pointed out that Shirdi airport is likely to commence operations soon. If we put it under RCS scheme then only one airline will get to fly from Shirdi airport. Whereas in the assessment of the State Government there is a far greater potential for Shirdi to have flights,” Choubey said. Asked whether the Government will wait for operationalisation of the flights awarded in the first round of bidding before the second bidding round starts, the Secretary said that the second round of winners will be announced before the first round of bidding is fully operationalised. Of the five airlines which won the right to operate flights under the first round of RCS in April only Alliance Air, the regional arm of Air India, and Trujet have started operations. The other three – SpiceJet, Air Odisha and Air Deccan have not yet started their RCS operations. Choubey was also of the view that the changes in the second round of bidding will not affect those who won routes in the first round. “The changes are prospective and they will not affect the existing players who have already been awarded,” he pointed out. Ashok Gajapathi Raju, Union Civil Aviation Minister, added, “We would like to have suggestions across the board so that we can benefit out of the whole exercise and become better.” Govt may tweak norms in Round 2 of bidding Next round of bidding under UDAN scheme likely in three months, says Jayant Sinha Yannick Ngakoue Womens Jersey
AAI may get additional land for Surat airport soon
If all goes well, Airports Authority of India (AAI) will be allotted additional chunk of land by the state government for immediate expansion of runway up to 3,810 metre by the end of this year. The district administration had set up teams comprising officers from the department of land resources (DLR), mamlatdar and executive engineer to carry out survey for the 63 hectares of additional chunk of land required for the expansion of Surat airport. Sources said AAI requires 63 hectares of land for immediate expansion of runway up to 3,810 metre and another 800 hectares for future development of Surat airport. AAI intends to construct a parallel runway of 1,525 metre. AAI is ready to spend on the expansion of Surat airport. Things are moving at a fast pace after Union minister of state for civil aviation Jayant Sinha personally urged chief minister Vijay Rupani on the need to allot additional land for the expansion of the runway in March. Official sources said Sinha had met Rupani and urged him to speed up the allocation of additional land, which is required for the expansion of the runway from 2,905 metre to 3,810 metre. Rupani instructed district collector Mahendra Patel to speed up the land allotment, which is lingering on for the last so many years. At present, the total airport land, which includes tarmac, runway and terminal is spread over in 317 hectares. If the state government allocates additional 63 hectares of land, the airport area would total up to around 380 hectares. AAI has taken up expansion of the existing runway from 2,250 metre to 2,905 metre. The work is likely to be completed by June 2017. “We immediately require 63 hectares of additional land from Gujarat government for expanding the runway from 2,905 metre to 3,810 metre in the second phase. With this expansion, Surat will be able to cater to full-fledged international flight operations, like Ahmedabad airport. We have submitted plan details to SUDA for land reservation and things have been set in motion,” said airport director Pramod Kumar Thakre. District collector Mahendra Patel told TOI, “Teams were formed to survey the 63 hectares land required by AAI. We are awaiting the report of the said survey. Once, the report is in, the process of allotting the 63 hectares land will be speeded up.” Jersey
Second phase of RCS to connected unserved routes
The ministry has proposed to expand the regional connectivity scheme to unserved routes in the second phase of regional connectivity scheme. “There are various routes like Lucknow-Varanasi, where there is no connectivity. During the second phase, we are expanding it to unserved routes too,” said aviation secretary R N Choubey. He further added that the routes to be connected will be decided by airlines and not us. “However, the unserved routes can be between two well connected airports too,” he added. The bidding for the second phase of RCS will begin from August and the government plans to take it beyond the 31 unserved routes that will get air connectivity in the first phase. Alex Galchenyuk Authentic Jersey
Haryana government signs five MoUs worth Rs 18,000 crore in Singapore
The Haryana government today signed five agreements with Singapore-based companies to attract Rs 18,000 crore investment in development projects in infrastructure and industrial sectors. Haryana Chief Minister Manohar Lal Khattar said here the companies will study various aspects of undertaking projects in the state. “We will see investments in infrastructure, industrial sector and other related sectors,” Khattar told PTI. “These five MoUs are worth Rs 18,000 crore of investment in the state,” he said, after attending the signing ceremony and addressing nearly 100 Singaporean businessmen at the venue. The five MoUs were signed with Meinhardt Group, YCH Logistics for Logistics projects, Ascendas Singbridge for Townships/Logistics parks development, Adonis for Wellness projects and equity investor Equis Energy which makes investments in a wide range of projects, including transmission and power distribution among others. The MoUs were signed by Haryana State Industrial and Infrastructure Development Corp Ltd’s Managing Director Raja Sekhar Vundru with representatives of the five companies. “We aim to promote Haryana as a vibrant and competitive destination internationally. We want to offer the state as a corporate capital, as an industrial destination, as a residential and entertainment centre, whereas at the same time, retaining its edge in manufacturing, services and knowledge sectors,” the chief minister added. “It is indeed going to be ‘Destination Haryana’ all the way during the coming years. A clear vision, political will, good governance, empathy, empowerment, partnerships and creativity will be the keywords to drive the future success of Haryana,” Lal said. Meinhardt Group, an infrastructure and civil engineering group headquartered in Singapore, has signed three agreements with Haryana. “The MoUs are for developing Aviation Hub, Smart Cities and Industrial Townships,” said Shahzad Nasim, Group Executive Chairman of the Meinhardt Group. The Meinhardt Group will do feasibility studies on the proposed development over the next three to four month, following which it would carry out logistics and financial evaluation of the projects. “We will then discuss various options, including land availability for progressing with the projects,” added Nasim. Manohar Khiatani, Deputy Group CEO of Ascendas-Singbridge said, “We chose Haryana because of its strategic location and its position as a fast-growing economic powerhouse in India”. “We are optimistic about the growth potential of Haryana, and are happy to sign this MOU with the Haryana government to facilitate more investment opportunities and business collaboration,” Khiatani said. International Enterprise Singapore, a trade and business export promoting agency, has identified Faridabad, Gurugram and Karnal key cities to be developed as model smart cities for the state. “This MoU will see Meinhardt partner Haryana on smart city solutions, industrial townships and an integrated aviation hub,” said IE Singapore. YCH is already present in over 50 locations across India. Margaret Toh, Executive Director, YCH Group, said, “Haryana is a focus state for us, especially with the upcoming GST implementation in India”. “We will continue to work closely with IE Singapore and the Haryana government to expand our presence in the state and develop warehousing assets and supply chain solutions. This MoU will facilitate our interests in securing strategic warehousing projects in Gurugram,” he said. Mark Barron Authentic Jersey
Purvanchal expressway: UP government to cancel tenders to 6 firms to develop expressway
The Yogi Adityanath government has decided to cancel the tenders awarded to six firms during the previous Samajwadi Party regime to develop the 354-km long Purvanchal Expressway between Lucknow and Ghazipur. Sources confirmed that the state government will soon table a proposal in the Cabinet to cancel the tenders and start afresh the process of selecting construction companies to execute the project. Cabinet Minister for Industrial Development Satish Mahana said that the previous tenders will be cancelled because the required land for the project was not available so far. He added that hardly 33 per cent land had been purchased for the project when these tenders were finalised. “Fresh tendering exercise will be done when required land is available. Also, cost of the project will be reduced,” said Mahana. The board of UP Expressways Industrial Development Authority (UPEIDA) approved the proposal on Tuesday, confirmed sources. The Purvanchal Expressway project, launched by then Chief Minister Akhilesh Yadav, was proposed to connect Lucknow with Ghazipur via Barabanki, Amethi, Sultanpur, Faizabad, Ambedkar Nagar, Azamgarh and Mau. The cost of the project was estimated to be Rs 19,000 crore, of which Rs 12,000 crore was allotted for construction work and the remaining Rs 7,000 crore for acquiring land. The project aims to reduce travel time between Lucknow and Ghazipur by around five hours. A senior official of the department said that the previous government had started the bidding process for the project in November 2015. By the end of last year, it had selected six firms — NCC, Ashoka Buildcon, PNC, Gayatri Constructions, Afcons and Larsen & Toubro — through tendering to develop eight stretches of the expressway. “These companies were shortlisted for the project through tendering process. But by the time contracts could be awarded, the model code of conduct came into effect for Assembly elections. After elections, the new government has decided to cancel these tenders and hold a fresh tender exercise with revised conditions,” said the official. “Tendering should ideally be done when the government has around 90 per cent of the required land area in its possession… In future, tenders will be awarded only when 90 per cent of the land is in possession,” the official added. Officials said the state government was in the process of purchasing land from farmers and the fresh tendering process was expected to begin in the next few months. Last month, when asked to comment on the Adityanath government’s decision to order a probe into the Agra-Lucknow Expressway, Akhilesh had said, “They should also cancel the tender of the Purvanchal Expressway, where work is going on. They should restart the work if they are finding problems.” Jordan Berry Jersey
Not averse to any probe in land acquisition matters: NHAI
The National Highway Authority of India (NHAI) today said it is not averse to any investigation by any agency, including CBI, into the matter of alleged irregularities in land acquisitions. It said allegations that NHAI is “reluctant on going ahead with the CBI enquiry in the matter of alleged irregularities in land acquisition in Nagina ? Kashipur, Kashipur ? Sitarganj, Sitarganj ? Tanakpur and Rudrapur – Kathgodam sections in the State of Uttarakhand” is not true. The matter pertains to alleged change in land use under section 143 of the Zamindari Abolition Act by revenue authorities in the process of acquisition of land for NH projects, the Ministry of Road Transport and Highways said in a statement. “The NHAI never objected to any enquiry or investigation by any agency at any point of time in the matter. The NHAI only conveyed its stand to various authorities in the state government to clarify the roles and responsibilities of officials of the state government and NHAI in land acquisition matters,” the statement said. The NHAI officials have no role to play in deciding the nature of land or the compensation amount to be paid for acquisition of land, it said adding, the role of NHAI officials is limited to depositing the amount as may be decided by the competent revenue authorities or the courts. “NHAI requested the state authorities to intervene in the matter only because dragging NHAI officers in such incidences is going to be counterproductive. This may not only lead to adverse impact on the process of land acquisition in Uttarakhand, but also affect our targets in other states too,” the statement said. It said in the present situation, the NH projects in Uttarakhand have come to a complete halt and it is feared that such a situation may arise in other States also and the whole NHDP may get affected severely. “It is clarified that land for NH projects is acquired under the provisions of the National Highways Act, 1956 (NH Act). As per the recommendation of the state government, the revenue officials of the state are duly appointed as Competent Authorities under section 3A of the NH Act,” it said. All the subsequent activities as well as declaration of awards are within the domain of the Competent Authority under the Act, it said. Asdrubal Cabrera Authentic Jersey
Use of solar rooftop systems dismal in metros: Greenpeace
Despite a substantial subsidy offered by the government, installation of solar rooftop systems has been “dismal” in metros including Delhi and Mumbai, an analysis by a green body today said. Rooftop solar systems are those in which electricity is generated by installing solar panels on rooftops of residential or commercial buildings. Greenpeace India in its new analysis – Indian cities slacking on rooftop solar said that despite policies and net metering guidelines in several states, installation of such systems has been dismal. “Despite policies and net metering guidelines in several states and a subsidy of 30 per cent offered by the Ministry of New and Renewable Energy (MNRE), the installation of solar rooftop systems has been dismal in leading metros in the country, especially in Chennai and Mumbai,” the green body said. According to reports, a net metering is a new concept where an instrument which has a special metering and billing agreement between utilities and their customers, facilitates the connection of small, renewable energy-generating systems to the power grid. It said, Delhi, which offers a generation-based subsidy as per the solar policy released last year, as well as net metered connections, has also failed to see a big uptake in the residential sector. “Delhis total solar potential is 2,500 MW with a residential potential of 1,250 MW. The official target in Delhi is to reach 1,000 MW worth of solar installations by 2020 and 2,000 MW by 2025. “But as of December 2016, only 35.9 MW have been installed out of which only 3 MW were residential installations in March 2016,” the analysis said. On the other hand, Mumbai, which has a potential of 1,720 MW has only 5 MW overall installed till now while the entire state of Tamil Nadu has less than 2 MW as against a rooftop solar target of 350 MW. The green body said that the MNRE has earmarked 40 GW as the rooftop solar target by 2022 but as of December 2016, installation had just crossed 1 GW, it said. The reasons for the slow uptake seem to be lack of familiarity with the process and fear of bureaucratic red tape, the body said while asserting that though net metering provisions are present in most states, effectiveness of implementation varies significantly. “Despite the national incentive in the form of a 30 per cent capital subsidy, and a range of state incentives and schemes, rooftop solar is yet to take off in the same manner as large-scale solar. “However, this does not mean India should lower its ambitious targets, as some have suggested. Rather, the government must step up and play a more proactive role in encouraging rooftop installations,” said Pujarini Sen, Climate and Energy Campaigner, Greenpeace India. Sen said that this can be done via innovative financing schemes, aggregating demand and incentivising city and state governments. “The potential benefits in terms of reduced energy expenditure and cleaner air due to reduced demand on fossil fuels are too significant to be ignored. “As the convenor and a founding member of the International Solar Alliance (ISA), and a country with abundant solar potential, Indias commitment to clean energy must continue to be robust,” Sen said. Noting that air pollution leads to 1.2 million deaths every year while referring to a Global Burden of Disease study, Greenpeace India said decarbonising the power sector is essential to tackle the menace of air pollution. Referring to a poll conducted by Greenpeace, the body said that close to 55 per cent of the 812 survey respondents from its supporter base expressed interest in investing in and installing solar. “There is still a widespread perception that installation of rooftop solar panels needs a large investment, and people are not always aware of the financial incentives available. “If central and state governments are serious about boosting solar, they must do a better job of reaching out to resident welfare associations and community groups to encourage people to shed their inhibitions and embrace rooftop solar,” said Sen. Kendall Lamm Womens Jersey
India’s red hot solar sector has been served a tax shocker
India’s sizzling solar power sector, where rock-bottom tariffs are now competing with coal-based electricity, has been served a tax plan that could cause a lot of burn. Under the upcoming Goods and Services Tax (GST) regime, which will replace multiple taxes levied by the central and state governments starting July 01, solar modules have been handed a rate of 18%. That’s quite a jump from the current 5% value added tax (VAT) that most states levy, which effectively drops to zero due to several waivers. “The new regime will, therefore, result in an increase of 18% in module cost, about 12% in inverter cost, and 3% in all service costs—increasing overall project cost by about 12%,” Bridge to India (BTI), a renewable energy consultancy, wrote in a recent note. By BTI’s estimation, the higher GST rates could hit over 10 gigawatt (GW) of ongoing projects. This is substantial considering that India is likely to have only 18GW of solar power by the end of 2017. As Quartz has argued earlier, India’s solar sector is already under duress with aggressive bidding in recent months having driven tariffs to unviable levels. Any further increase in costs will only worsen things. Although the ministry of new and renewable energy has previously assured developers that any increase in cost would be passed through to the buyer, according to BTI, this is easier said than done. Not only are there multiple formats of power purchase agreements (PPAs) to deal with, distribution companies are also expected to resist tariff hikes at a time when auctions are throwing up record-low numbers. “Third, the entire process for tariff determination, ratification, and documentation amendments would easily take up to six months or even more,” BTI’s note said. Solar project developers, too, estimate a significant increase in cost and delays. “Following GST, solar projects will be about 18% costlier on an average, while cost of generation would go up by around 20%,” Ratul Puri, chairman of Hindustan Power Projects, told the Economic Times. “It would require project developers to go back to banks for additional funding for projects under construction. It might require a minimum of three months to get additional funding, thus delaying projects.” These delays, BTI reckons, could even lead to the cancellation of some projects altogether. In the long-term, however, the GST’s impact is likely to be evened out by falling costs. That’s something India’s energy minister Piyush Goyal is betting on. “We don’t need support of lower taxes to encourage renewable energy,” Goyal said on May 19. “Solar, wind, and hydro would be affordable forms of power. I don’t think GST rates will impact my sectors.” Nonetheless, India’s solar sector seems set up to deal with some short-term pain. Zack Martin Jersey
Holiday travel turns cheap, airlines offering flights for as low as Rs 11
To counter SpiceJetBSE 0.67 % anniversary sale, Indigo, Jet AirwaysBSE -1.15 % and other airlines have also announced discount fare offers for the flier on select destinations and select period. Here are the details of the sale offers by airlines: SpiceJet : The airline has announced a sale with ticket price starting as low as Rs 12 one-way for all domestic and international flights. The discounts will be applicable on only one way fares. Booking Period: May 23, 2017 to May 28, 2017 Travel Period: June 26, 2017 to March 24, 2018 Minimum fare: Rs 12 (As claimed by the company) Indigo : The Gurgaon-based airline has announced sale fares starting at Rs 11 (basic fare) and all inclusive fare starts at Rs 899. However, the offers are valid on select sectors and select non-stop flights only. Booking Period: May 23, 2017 to May 28, 2017 Travel Period: June 26, 2017 to March 24, 2018 Minimum fare: Rs 11 (As claimed by the company) Jet Airways : Jet Airways is also offering special fares on selected routes. Though, the offer is not applicable on group bookings. Booking Period: May 24, 2017 to May 26, 2017 Travel Period: June 15, 2017 to September 20, 2017 Minimum fare: Rs 1,079 (all-inclusive) AirAsia : The Malaysia-based low-cost airline has also jumped into the ongoing sale competition. It is offering discounts on one-way journey and is available on selected fare classes only. Booking Period: May 23, 2017 to May 28, 2017 Travel Period: Valid till November 23, 2017 Minimum fare: Rs 1,699 Denzel Perryman Authentic Jersey
Compensation for grid curtailment to benefit renewable sector: India Ratings
The Centre’s proposed compensation mechanism for existing renewable energy projects will protect the cash flows to an extent from grid curtailments and will also ensure a favourable operational environment for renewables sector, said India Ratings. “If the proposal is adopted it will protect the cash flows to an extent from grid curtailments and also ensure a favourable operational environment for renewable energy projects. It will also be positive for wind and solar energy developers,” the ratings agency said in a statement here. Historically, power purchase agreements (PPAs) signed for renewable energy projects have failed to address the grid issues and lacked a mechanism to compensate for energy loss. According to Ind-Ra, the annual debt service coverage ratio (DSCR) slips by 0.12 times for 10 per cent of energy curtailment and the 50 per cent proposed compensation at PPA tariff will restrict the fall by half at 0.06 per cent. The developers have bridged any cash flow shortfall in debt service through a combination of or individually tapping debt service reserve or drawing working capital limits or sponsor support, it said. “The recent reverse auction of 750MW solar capacity in Rewa solar bid included the provisions for compensation for deemed generation in case of curtailment. The recommended PPA format for future wind and solar projects should also include provisions for curtailment compensation.” It, however, maintained that the absence of clarity on two possible reasons for grid curtailment – low system demand and grid security – could however pose new challenges for developers. “Further clarity by the authority/utilities to define the terms and spell out when these measures will need to be opted for could allay possible apprehensions of the developers and make the process more transparent,” the agency said. Also, in the proposed framework it is unclear which situations will be identified as low system demand incidences, since the network operators have the option to shut down a thermal plant which is falling below its technical minimum operating level, it said. Citing the recent forced shutdown of some thermal power plants by Tamil Nadu discom during high wind season to enable full evacuation of wind power generation, Ind-Ra said there is a possibility of utilities taking refuge under the low system demand and curtail high costs renewables to save costs leading to reduced cash flows. “We believe that utilities should project demand for the next six months to one year along with definition of low system demand. This transparent process could allay the fears of developers when actually the demand plummets,” it said. The compensation will also incentivise grid operators and distribution utilities to reduce curtailments and benefit renewable energy developers in scheduling and forecasting and enable integration of increasing renewable energy capacity. In FY17, grid curtailment was prevalent for wind projects in Rajasthan (up to even 45 per cent energy curtailed compared to 90 per cent of plant load factor) and solar projects in Tamil Nadu. Deion Sanders Jersey